Foreign Voluntary Workers’ Compensation: Closing the Coverage Gap for Cross-Border Teams
Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
In San Diego County, with its diverse workforce and cross border business activities, employers increasingly consider hiring talent from nearby Tijuana or have employees travel into Mexico for business purposes. In other scenarios, American employees decide to move and work remotely from Mexico or commit to a daily commute into the US.
While Mexico-based employees working remotely and cross-border commuters bring valuable skills to San Diego’s employers, North American workers’ compensation policies do not offer protection from unique international exposures or the services your employees need should an injury occur outside the United States. Fortunately, an insurance product is available to specifically address this international exposure: Foreign Voluntary Workers’ Compensation (FVWC) insurance.
Which employers should consider FVWC?
The coverage is considered voluntary because it is not required by law to purchase. Companies with employees who travel or commute to foreign countries should consider FVWC to cover the following:
Employees on short-term business trips across the US border.
Employees on long-term international assignments.
Hybrid employees working remotely with some commuting into the United States.
What benefits does FVWC provide injured workers?
Medical expenses and lost wages: Covers medical care, lost income, and disability benefits for injuries or illnesses sustained on the job in a foreign country.
Repatriation: Pays for the cost of transporting an ill or injured employee to their home country for treatment, or to a suitable medical facility, and can also cover the return of remains if an employee dies.
Extended coverage: Can include 24-hour coverage, endemic diseases (like malaria), and acts of war or terrorism, which are often excluded by standard policies.
Employer liability protection: Protects the business from potential lawsuits if an employee sues for a work-related injury that occurs abroad.
Facilitates care: Many policies provide a point of contact to help employees navigate the foreign healthcare system, which can be a significant concern for those in unfamiliar countries
San Diego employers with Mexico-based employees or operations outside the United States should learn if the existing workers’ compensation insurance policy will cover international incidents. If not, employers would be wise to explore foreign voluntary worker’s compensation insurance. Please contact me at sbrown@ranchomesa.com or (619) 937-0175 to discuss if this coverage is a fit for your organization.